Stop Foreclosure with Loss Mitigation Programs

The federal government and the mortgage industry established loss mitigation programs in order to stop home foreclosures. They help homeowners in default on their mortgages to find alternatives to their homes foreclosing. Every homeowner’s situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure. Our extensive experience and solid working relationships with mortgage lenders allows us to help you avoid the common pitfalls that many homeowners encounter while trying to work things out directly with their lender. After performing a thorough analysis of your personal finances and reviewing your lender’s loss mitigation policies our Resolution Team will negotiate with your lender to provide the best possible solution for you and your family’s situation. We can help you save your home and credit history through a variety of loss mitigation options such as:

1. LOAN MODIFICATION
(Available on a very limited number of VA loans with lender and/or investor approval - This Option is Called Recast for FHA loans)

If you have incurred a long-term financial hardship, our office can assist you in supplying the appropriate information to lender to take the appropriate measures to modify the term(s) of your mortgage. This could lower the interest rate and/or extend the term of the loan resulting in lower payments. There are costs and fees associated with a modification that you will be responsible for. All property taxes must be current or you must be participating in an approved payment plan with your taxing authority to be eligible for a modification. Any additional liens or mortgagees must agree to be subordinate to the first mortgage. All requests are subject to your lender’s approval. Click Here if you want if you want our assistance with participating in this program.

2. VA LOAN MODIFICATION/REFUNDING
(Available for VA loans only- Need at least 30 days to process)

A refunding is when the VA buys your loan from the lender. Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate. Click Here if you want if you want our assistance with participating in this program.

3. SHORT PAYOFF
(Short Sale, Pre-foreclosure Sale, Compromise Of Sale)

If you have suffered a long term financial hardship and are unable to maintain your loan or if you need to sell the property to avoid a default loss on the property, it is possible that the lender may be able to accommodate you with a short payoff. If you qualify and if this is an option you wish to pursue, you must inform the loss mitigation specialist assisting you immediately. There may be tax ramifications associated with a short payoff or even a foreclosure, since both are considered debt relief; therefore, we recommend you contact your tax advisor for details. Click Here if you want if you want our assistance with participating in this program.

4. DEED-IN-LIEU OF FORECLOSURE

If you have incurred a long term financial hardship and your house has been on the market (at fair market value) for at least 90 days, you may be eligible for a deed-in lieu of foreclosure. To be considered for this option, you must complete a financial package and provide a copy of your recent active listing agreement. Also, there cannot be any additional claims or liens (other the mortgage) against the property. If you are approved for a deed-in-lieu, you will be giving up all rights to the property and the property will be conveyed to your investor. In exchange for the deed-in-lieu, the lender may waiver all deficiency judgment rights. You may be asked to participate in a Short Payoff program before a deed-in-lieu of foreclosure is accepted. Click Here if you want if you want our assistance with participating in this program.

5. REPAYMENT PLAN

If you have incurred a short-term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. You must be able to show that they can afford this plan in order to be eligible. Click Here if you want if you want our assistance with participating in this program.

6. SPECIAL FORBEARANCE
(Available for certain FHA loans only)

If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the lender will also allow you to submit a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months. Type II – can be utilized in an unemployment situation whereby the promise of future employment is present. We have done VA loans that resulted 27-month repayment plans. Click Here if you want if you want our assistance participating in this program.

7. PARTIAL CLAIM
(Available for FHA mortgages only)

Your lender may assist you in requesting a partial claim if you qualify. You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2nd mortgage) between you and the Secretary of Housing Urban Development. The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest. The partial claim can be for no more than 12 months of past due payments. Click Here if you want our assistance with participating in this program.